BRICS-led dedollarization should alarm the US

The recent expansion of BRICS should be a key cause of concern for the US, as new members along with countries who want to join could amplify dedollarization, according to a former State Department official.

Writing for the Atlantic Council, Thomas Hill noted that Egypt, among others, was added to the BRICS club while Algeria and Tunisia were turned down.

And it foreshadows how North African countries may become some of the "most aggressive advocates" for de-dollarization, he warned.

"The BRICS-led dedollarization effort should alarm US policymakers, especially in light of the recent BRICS membership expansion," wrote Hill, who is currently the director for the North Africa Program at the US Institute of Peace. "It is clear that traditional US allies, such as Egypt, Saudi Arabia, and the UAE, are already exploring ways to dedollarize, and that Beijing is helping that process move forward."

This year, the economic bloc — originally composed of Brazil, Russia, India, China, and South Africa — has touted plans to take on the greenback's dominance in the global financial system.